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bigduckontax, Accountant
Category: Tax
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I am retired (67) receive UK pension, UK occupational

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Hi, I am retired (67) receive UK pension, UK occupational pension all taxed at source. I have a small amount of additional earnings untaxed which I delair as self employed and pay tax Jan/July. In total this brings me over the higher rate tax rate (45,000) by about £8000. From this year I receive an Italian earnings related pension from Itailan state system based on 2 years work in Italy. This is taxed at source at a rate which I think is 35%, I see only the net amount. I thought I understood that this
JA: Are you filing as a sole proprietor or independent contractor?
Customer: Sorry early send I had not finished, - I think I am an independent contactor, I do small bits of work for European Commission and put this in under foregen income untaxed. The question I was asking was about the tax on the Italian pension, which I understood was subject to a reciprical tax agreement on state paid pensions, that could not be taxed in both countries, which I thought was a little different from just double taxation. I cannot find in the tax system how to document this except as a standard income ....... Or that that how I must enter it?
JA: Anything else you want the Accountant to know before I connect you?
Customer: Thats my question

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

Your world wide income will be subject to UK Income tax (IT) as you are probably aware. The Double Taxation Convention between the UK and Italy precludes the same income stream being taxed on both jurisdictions. This is ahieved by means of tax credits, the tax deducted in Italy being allowed as a tax credit against the UK liability.

Pensions are invariable taxed in country of origin and yiou just have to include the relevant tax credits on your annual self assessmant tax return. Lots of people are in the same boat as you.

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 3 months ago.
Thanks, ***** ***** clear

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